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British regulator reports fewer insurance complaints

Insurance-related complaints to the UK Financial Conduct Authority fell 15% in the first half of this year, but still accounted for the largest number of grievances reported to the regulator.

The drop was mostly due to fewer cases concerning consumer credit – known as payment protection insurance in Britain – which still comprised 61% of new complaints.

General insurance cases grew 6% to account for 11% of new complaints to the regulator in the half.

The 2.1 million insurance-related complaints made up 73% of all grievances in the half; 85% of these related to arranging, advising or selling.

The number was down on last year’s peak of 2.5 million in the December half, mostly related to the payment protection scandal. Banks and building societies sold the cover to borrowers who did not need it and who found during the global financial crisis that the policies would not pay out. In 2009, payment protection matters accounted for only 7% of cases.

Complaints about general insurance intermediaries fell 15% to 2.12 million in the first half.

The Financial Conduct Authority also covers banking, life insurance, home finance and investments.